How Corrugated Box Price Increases Impact Small E-Commerce Businesses

In the world of small e-commerce, every dollar counts. Especially when it comes to shipping and packaging. For businesses operating out of Atlanta or shipping throughout the Southeast, recent increases in corrugated box prices are forcing owners to rethink how they manage their bottom line. Packaging may seem like a minor line item, but when prices rise rapidly, it can take a noticeable bite out of already thin margins. 

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Let’s break down why these increases are happening, what they mean for small businesses, and how local e-commerce companies can adapt to stay profitable. 

Why Are Corrugated Box Prices Rising? 

The cost of corrugated cardboard has been climbing steadily, with several factors driving this increase. 

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• Raw Material Costs: The price of containerboard, the paper used to manufacture corrugated boxes, has seen multiple hikes. In January 2025, major US producers announced price increases of $60 to $70 per ton for linerboard.
• Supply Chain Disruptions: Global supply chain issues, including logistical challenges and increased freight costs, have impacted the availability and pricing of raw materials. 
• Labor Shortages: Labor costs have surged, particularly in manufacturing and transportation sectors, contributing to increased expenses for packaging suppliers. 
• Increased Demand: The e-commerce boom has led to heightened demand for corrugated packaging. Notably, e-commerce retail uses seven times more corrugated packaging per dollar than traditional retail, amplifying the strain on supply. 

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In short, it’s not just one factor. It’s a convergence of multiple challenges. 

Increased Costs: How It Affects Small E-Commerce Margins 

For Atlanta’s small e-commerce businesses, every cent added to packaging costs puts more pressure on profit margins. Consider this: 

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• Box Price Increases: A small business shipping 500 packages a month may have paid around $.50 per box in 2021. In 2025, that same box may now cost $.70 or more, depending on size and customization. This results in an increase of $100 per month, or $1,200 per year, just for one item in the shipping process. 
• Shipping Carrier Fees: Rising fuel prices and increased demand have led to higher shipping rates from major carriers. 
• Warehouse Rental Rates: In metro Atlanta, warehouse rental rates have seen significant increases over the past two years, adding to operational costs. 

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Small businesses often lack the pricing power to pass these increased costs onto customers, especially in competitive markets. The result? Slimmer margins or, in some cases, losses on certain products or categories. 

Strategies to Mitigate Higher Packaging Costs 

The good news? There are practical ways for small businesses to reduce the impact of rising packaging costs, especially when working with a logistics partner like All Points that understands local and regional shipping dynamics. 

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Here are a few strategies that can help:

Buy in Bulk Through a 3PL

Leveraging a third-party logistics provider (3PL) like All Points means gaining access to negotiated rates for packaging supplies. When small businesses join a network of clients, they can take advantage of bulk discounts typically reserved for larger operations. 

Optimize Box Sizes

Many small businesses use boxes that are larger than necessary. Reducing box size helps cut both packaging costs and shipping charges, especially with dimensional weight pricing models. 

Consolidate Shipments

Shipping multiple items to the same customer in a single package can reduce per-order box usage and associated costs. 

Automate Packaging Decisions 

Investing in software or fulfillment services that auto-select the right box size for each order can minimize waste and avoid overspending on materials. 

Work With Local Suppliers 

Sourcing corrugated packaging from Georgia-based suppliers can reduce shipping time, support the local economy, and often result in lower freight costs. 

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Alternatives to Traditional Corrugated Packaging 

While corrugated boxes are the default for most shipments, alternatives are gaining traction, especially for businesses seeking sustainability and cost savings. 

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Padded Mailers

Padded mailers, made with kraft paper, bubble wrap, or recycled fibers, are ideal for smaller, lightweight products like books, apparel, cosmetics, and accessories. They’re significantly cheaper than boxes, occupy less space during transit, and reduce shipping weight, which can lead to lower carrier fees. 

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Bonus for Atlanta businesses: Local packaging suppliers often stock padded mailers in bulk, and All Points can help source and store them efficiently within your existing fulfillment plan. 

Poly Mailers

For soft, non-fragile items like t-shirts or leggings, poly mailers are a great solution. They’re durable, tear-resistent, and water resistant, which is perfect for southeastern US weather. Plus, they’re extremely lightweight, cutting down on both packaging costs and shipping expenses. 

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Reusable poly mailers, with built-in return labels and double adhesive strips, are also growing in popularity for brands focusing on sustainability. 

Recyclable and Compostable Packaging

Many consumers today expect environmentally responsible packaging. Options include: 

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• Corrugated mailers made from 100% recycled material
• Compostable mailers made from PLA or cornstarch-based bioplastics
• Molded pulp inserts, a sustainable alternative to plastic bubble wrap or foam

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These options may carry slightly higher upfront costs but can align your brand with growing customer preferences for sustainability, especially valuable for eco-conscious shoppers in progressive cities like Atlanta. 

Custom-Sized Mailers and On-Demand Packaging

Too often, e-commerce sellers rely on ‘one-size-fits-all’ boxes, which require excess padding and increase dimensional weight pricing. Switching to custom-sized packaging helps minimize material use and costs. 

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Some businesses are investing in on-demand packaging systems, which cut boxes to the exact dimensions of the item being shipped. While this may not be practical for very small businesses, local fulfillment partners like All Points can provide these efficiencies without requiring capital investment from your team. 

Paper-Based Void Fill and Wrapping 

Instead of plastic pillows or foam peanuts, paper void fill (like kraft paper or shredded recycled paper) offers a more eco-friendly and affordable alternative. Brands that want to create a premium, rustic unboxing experience often prefer these materials, and they pair well with recyclable boxes or mailers. 

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Atlanta-based suppliers frequently offer customizable printed kraft wrapping paper, allowing small businesses to boost branding without adding plastic or cost-heavy inserts. 

Return-Ready and Minimal Packaging 

Minimalist packaging, especially for low-risk products, is gaining traction. Some businesses skip outer boxes altogether for local deliveries, instead using tamper-evident paper mailers or corrugated envelopes. 

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Return-ready designs with resealable adhesive strips also cut down on the need for separate return packaging, saving both the seller and the customer time and money. 

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Local Tip: Atlanta’s growing network of eco-packaging startups and distribution centers makes it easier for small businesses to experiment with alternative packaging materials without long lead times or massive minimum order quantities. All Points regularly works with businesses seeking these solutions and can help test new formats at scale. 

Long-Term Outlook: Will Prices Stabilize?

While inflation has shown signs of cooling, the packaging industry continues to experience volatility. Experts project that average containerboard prices in North America could rise about 9% over the next 12 months.

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However, Atlanta’s logistics infrastructure offers some reason for optimism. Ongoing investments in Georgia’s inland ports, including the Savannah-to-Atlanta freight corridor, are expected to streamline distribution and potentially stabilize regional supply costs in the near future. 

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If container board production catches up and freight bottlenecks ease, we may see prices plateau. Still, businesses should plan for at least moderate increases over the next year. 

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How Small Businesses Can Adapt and Stay Competitive 

For Atlanta-based small businesses, staying competitive in this environment requires smart logistics, flexible packaging strategies, and reliable fulfillment partners. 

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Here’s what you can do: 

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• Partner with a Local 3PL: All Points helps clients access better rates, reduce fulfillment errors, and tap into Atlanta’s distribution network. All without the overhead of managing warehousing on your own. 
• Audit Your Packaging Workflow: From SKUs to shipping zones, analyzing your packaging habits can highlight waste and open up savings. 
• Test and Iterate: Start small when switching materials or suppliers. Try padded mailers for one product line, or consolidate packaging on bundles. 
• Be Transparent with Customers: If your costs go up, don’t hide it. Customers appreciate honest communication and are often willing to support brands trying to reduce environmental impact or keep jobs local. 
• Monitor Trends and Supplier Updates: Staying informed about raw material markets and regional supply chains helps you plan ahead, and negotiate better deals. 

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